| IE presented on January 14th the “IE Luxury Barometer 2014”, the first luxury barometer ever elaborated by the IE Premium and Prestige Business Observatory. It is an approach to the key topics that, according to experts, affected the luxury sector and prestige market during 2014 and will condition their priorities during 2015.
The goal of this study was both to know the opinion of experts on the relevant issues during 2014 and to explore the implications that these issues may have for the evolution of this sector in the immediate future and in the long term. The methodology of this study consisted on two separate phases. First, a quantitative research on a 40-people population with a recognized knowledge of the sector was carried out. Second, there was a qualitative study based on a roundtable where results of the initial quantitative phase were discussed.
From this study, we can highlight the following results:
1. Creating memorable experiences for the customer that go beyond the product. The experiences are formed by the combination of feelings linked to the company. Luxury clients expect memorable customer experiences, which is why vertical integration and control are both of vital importance.
2. Luxury surrenders to the internet. Technology (e-commerce & communication) allows new ways of interacting with the client.
3. Attracting New Customers and Generations. New Values of luxury. The evolution of technology is now a key to reach for new customers.
4. Protecting exclusivity, aiming at luxury positioning. We can see this in the decision made by several brands to limit their production and to promote limited series sales and in the trend followed by large apparel and accessories brands to strengthen their offer with products categorized as less accessible.
5. Product Personalization. It is marked by experiences that are exclusive, unique, intended, designed and made for each individual.
6. Innovation in the processes and product categories. It breaks the paradigm of immutability in luxury products and processes associated to luxury.
7. Tourism reinforced as a key driver for growth. It’s also one of the largest income sources for large companies.
8. New values and beliefs associated to the concept of luxury. It comes with the arrival of new generations named Generation X, Generation Y, and Millenials.
9. Sustainability and social responsibility. They become an additional value for companies, since new clients are more conscious and sophisticated. They look for the best products, meaning sustainable ones.
10. Access to key and scarce resources, including talent. Talent becomes another scarce resource for this sector. “The 10 key topics reflected on the IE Luxury Barometer 2014 can be summed up in three, that are interrelated: how to attract new generations (digital natives with new values), creating memorable experiences, and applying technology”, said Maria Eugenia Giron, Executive Director of the IE Premium and Prestige Business Observatory. |
